For the first time, more than half of the company’s revenues in the wine segment came from premium products, reflecting the progress of its strategy of focusing on higher-value products. The company’s earnings rose 26.7%.
March 15, 2022 – Progress in the premiumization strategy of its sales mix enabled Viña Concha y Toro to close 2021 with an 8.8% increase in revenues and 26.7% in profits, despite the stress due to the global logistics during the second half of the year, and the impacts of the prolongation of the pandemic.
Sales reached Ch$836,713 million, achieving a record for the second consecutive year, while profits amounted to Ch$98,810 million. In the fourth quarter, the company’s sales grew 20.5%, reflecting the strength of its focus brands and logistics management. In terms of results, EBITDA rose 18.5% and profit increased 35.6%.
“Once again we had a year of historic results for Viña Concha y Toro. In 2021, the company’s financial figures are the result of a corporate strategy we have consistently pursued in recent years, with a focus on the value of our sales portfolio and the profitability of operations,” said Viña Concha y Toro’s CEO, Eduardo Guilisasti.
In both volume and value, growth was driven by the performance of the company’s Principal and Invest brands, which are the strategic focus and accelerator of the company’s premiumization strategy. The Principal and Invest brand portfolio led growth in 2021 with an expansion of 10.6% and 16.7%, in volume and value, respectively. The improved sales mix is evidenced by the increase in the share of the Principal and Invest categories to 49.2% of consolidated sales, up from 45.5% in 2020.
In this way, the company reached a milestone. For the first time, only considering the wine segment’s revenues, these two brand groups explain more than half of the segment’s sales (53.3%), which compares to 39.7% in 2017.
Outstanding performances included Casillero del Diablo and its line extensions with 8.7% growth and a volume of 7.2 million cases; Trivento Reserve with an 11% increase and 1.5 million cases, consolidating its leadership position in the Argentine category in the United Kingdom and Europe; Diablo (+123%); Cono Sur Bicicleta (+3%); Marques de Casa Concha (+29%), and Don Melchor (+45%).
Brand building is fundamental to maintaining brand strength. Proof of this is that in the seven main markets – United Kingdom, United States, Chile, Brazil, Mexico, Sweden and Japan – the company has at least one wine among the top five best-sellers in each country.
The United Kingdom continued to be the company’s most important market, generating 25% of revenues, with an increase of 10.1%. Brazil, Mexico and South Korea also achieved outstanding performance with double-digit gains. In the United States, sales volume for the Invest category grew 7.1%, led by Bonterra, Trivento Golden, Cono Sur Orgánico, Marques de Casa Concha and Don Melchor.
In Chile, sales rose 25%, with a growing share of premium and premium brands, as well as an increase in average price. Premiumization was driven by Casillero del Diablo Reserva and its line extensions, along with Diablo, Cono Sur Bicicleta, Marques de Casa Concha and Cono Sur Orgánico.
The Chinese market saw strong year-on-year growth of 89.5%, reflecting increased penetration of high-end products in that country, as well as the effectiveness of a new distribution office created in 2021 in Shanghai. In the premium and above segment alone, growth was 152%.
“Looking ahead to 2022, we are aware of the great challenges that exist for companies and individuals on a number of fronts. Along with hoping for a favorable evolution of the pandemic and the logistics crisis, and an early peaceful resolution of the recent geopolitical conflict in Eastern Europe, we will continue to work with great commitment and confidence in the solid foundations of our company, which will enable it to face the challenges ahead and end this year as an even stronger company,” said Guilisasti.
